Paramount hits new zone in the Sierra Madre

Paramount Gold and Silver‘s (PZG-T, PZG-X) new discovery at its San Miguel project in Mexico is coming into clearer focus.

The company put four holes into discovery — named Clavo 66 which sits in the La Union area in the southern portion of the Guazapares structure.

Drill results were highlighted by true width intersections of 1.68 metres grading 4.55 grams gold and 11 grams silver; 2.23 metres grading 26.07 grams gold and 9 grams silver; 6.18 metres grading 3.93 grams gold and 32 grams silver and 1.91 metres grading 1.27 grams gold and 673 grams silver. Each of those results comes from four separate holes.

The company says the four holes indicate that a new mineralized zone has been hit upon, and it remains open to the north and south along strike and down dip.

In the past the La Union area had only seen shallow drilling.

Also boding well for the company is the fact that the deeper intersects at La Union parallel results from other drill programs.

“As we have drilled deeper at the San Miguel vein, the San Antonio area and now the La Union area, gold values have increased dramatically. All three of these areas remain open for resource expansion down dip and along strike,” Larry Segerstrom, Paramount’s chief operating officer said in a statement.

The project sits in the Guazapares mining district which is part of the Sierra Madre gold-silver belt.

In Toronto on Sept. 2, the company’s shares were off 4% or 5 to $1.11 on roughly 18,000 shares traded.